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Ryanair warns of rising fuel costs – reports first quarter profit | business news

Ryanair has warned that rising fuel prices will push up costs, despite the company reporting a profit in the first quarter.

The aviation industry has been impacted by significant disruptions at airports and in the US Ukraine War, but the low-cost carrier reported a profit after tax of €170m (£145m) against a net loss of €273m (£233m) for the first quarter (April to June 2022).

Passenger numbers were 9% higher than before COVID, rising to 45.5 million as the travel industry recovers from the pandemic.

However, Ryanair said the Ukraine conflict had “severely damaged” Easter bookings and fares, posting a 4% decline from the same quarter before the coronavirus.

It also said it has been hampered by “unprecedented” disruptions to air traffic control and airport processing, but hopes to be able to operate “almost 100%” of its scheduled flights and minimize delays.

The airline warned that rising oil prices will increase its unsecured fuel costs by 20% for the remainder of the fiscal year.

The company’s chief executive, Michael O’Leary, said: “Our decision to work with our unions and agree on pay cuts to minimize job losses (and keep crews informed) during the two years of COVID has been made confirmed in recent months as many European airlines, airports and handling companies have struggled to restore jobs that have been shed during the pandemic.

“Ryanair seems unusual among major EU airlines in summer 22 in that we are fully staffed despite operating at 115% of our pre-COVID capacity.

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“While we remain hopeful that the high vaccination rate in Europe will allow the aviation and tourism industries to fully recover and finally put COVID behind us, we cannot ignore the risk of new COVID variants in autumn 2022.

“Our experience with Omicron last November and the invasion of Ukraine in February shows how fragile the air travel market remains and the strength of any recovery will depend to a large extent on the absence of adverse or unanticipated developments in the remainder of 2022-23 . “

Last month, Mr O’Leary warned disruptions at Gatwick and Heathrow will continue throughout the summer, adding that the problem will not be resolved until “we are starting to allow access for European workers“.

Ryanair warns of rising fuel costs – reports first quarter profit | business news

Source link Ryanair warns of rising fuel costs – reports first quarter profit | business news

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